Delta sees a US$15b engine-repair bonanza in Airbus jet deal
Delta Air Lines' new order for Airbus jets shows that it’s sometimes the side dish, not the main entree, that helps land a blockbuster deal. In announcing a purchase of 100 planes, Delta also said it would become a major maintenance provider for the Pratt & Whitney engines powering the aircraft. That opens up a new revenue stream for the airline’s TechOps unit, which serves other airlines in addition to Delta. Pratt, a unit of United Technologies Corp., has committed to use TechOps for more than 5,000 engine repairs and overhauls. That helps create a US$15b sales opportunity in the long term, Delta CE Ed Bastian said Thursday. Whether the projection pans out remains to be seen. By comparison, Delta’s order of A321neo planes carries a list value of $12.7b, before the discounts that are customary for aircraft purchases. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-12-15/sky/delta-sees-a-us-15b-engine-repair-bonanza-in-airbus-jet-deal
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Delta sees a US$15b engine-repair bonanza in Airbus jet deal
Delta Air Lines' new order for Airbus jets shows that it’s sometimes the side dish, not the main entree, that helps land a blockbuster deal. In announcing a purchase of 100 planes, Delta also said it would become a major maintenance provider for the Pratt & Whitney engines powering the aircraft. That opens up a new revenue stream for the airline’s TechOps unit, which serves other airlines in addition to Delta. Pratt, a unit of United Technologies Corp., has committed to use TechOps for more than 5,000 engine repairs and overhauls. That helps create a US$15b sales opportunity in the long term, Delta CE Ed Bastian said Thursday. Whether the projection pans out remains to be seen. By comparison, Delta’s order of A321neo planes carries a list value of $12.7b, before the discounts that are customary for aircraft purchases. <br/>
